Current Status of Federal Student Loan Payments
Federal student loan payments are not currently paused. As of October 2023, the payment pause that began in March 2020 ended, and borrowers with federal loans are required to resume making monthly payments. If you have federal student loans, your servicer should have sent you notice about the restart date and your new payment amount.
The pause affected Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans held by the Department of Education. During the pause period, no payments were required, interest did not accrue, and collection activity on defaulted loans stopped. That protection is no longer in place.
If you have not yet resumed payments or are unsure of your current status, contact your loan servicer directly. You can find your servicer's name and contact information by logging into your Federal Student Aid account at studentaid.gov or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
Key Takeaways
- The federal student loan payment pause ended in October 2023, and borrowers must now make regular monthly payments on their loans.
- Interest accrual and collection activity resumed when the pause ended, so loans that were in default before the pause may have collection efforts restart.
- Your loan servicer sent notice about the restart date and your payment amount, but you can verify your status by logging into studentaid.gov or calling 1-800-433-3243.
- If you cannot afford your current payment amount, income-driven repayment plans may lower your monthly obligation based on your earnings.
What Happened During the Payment Pause
From March 2020 through September 2023, borrowers with federal student loans did not have to make payments. The Department of Education suspended payment requirements, set interest rates to 0%, and paused collection activity on defaulted loans. This meant that even if you were not paying, your loan balance did not grow due to interest.
The pause applied only to federal loans held by the Department of Education. Private student loans were never paused. If you have both federal and private loans, only your federal loans received this protection.
During the pause, many borrowers used the time to pay down other debts, build emergency savings, or address financial hardship. When the pause ended, those protections ended as well, and standard loan terms resumed.
Resuming Payments After the Pause Ended
Your loan servicer sent written notice at least 21 days before payments restarted, telling you the date payments were due to resume and what your new monthly payment would be. If you did not receive this notice or cannot find it, contact your servicer to confirm your payment amount and due date.
If you were in default before the pause began, your loans may have been brought current during the pause period. However, collection activity on defaulted loans resumed when the pause ended. If you are in default now, your servicer or a collection agency may contact you about repayment.
If you have multiple federal loans, you may have multiple servicers. Each servicer manages different loans and sends separate bills. Log into studentaid.gov to see all your loans and which servicer handles each one.
Income-Driven Repayment Plans as an Alternative to Standard Payments
If your standard monthly payment is unaffordable, you may be able to lower it through an income-driven repayment plan. These plans calculate your payment based on your discretionary income rather than your loan balance. Depending on the plan, your payment could be as low as $0 per month if your income is below the poverty line.
Four income-driven plans exist: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Each has different income thresholds, payment calculations, and forgiveness timelines. You can compare them on the Federal Student Aid website or use the Repayment Estimator tool at studentaid.gov.
To switch to an income-driven plan, you must contact your loan servicer and request the change. You will need to provide proof of your current income, usually through your most recent tax return or a statement from your employer. The process typically takes two to four weeks.
What Happens If You Cannot Pay Right Now
If you cannot make your payment when it is due, contact your servicer when ready rather than waiting. Servicers can place your loan in forbearance or deferment, which temporarily pauses or reduces your payment obligation. These options prevent your loan from going into default while you address your financial situation.
Forbearance allows you to pause or reduce payments for up to three years, though interest continues to accrue on most loans. Deferment also pauses payments, and on subsidized loans, the government pays the interest for you during the deferment period. Both options require you to request them from your servicer and provide documentation of your hardship.
If you do not pay and do not request forbearance or deferment, your loan enters default after 270 days of non-payment. Default triggers collection activity, wage garnishment, and tax refund offset. It also damages your credit score and can affect your ability to borrow in the future.
Loan Forgiveness Programs That May Still explore
Several federal forgiveness programs exist for borrowers who meet specific criteria. Public Service Loan Forgiveness (PSLF) forgives remaining loan balances for borrowers who work in government or nonprofit jobs and make 120 may have access to payments. Teacher Loan Forgiveness forgives up to $17,500 for teachers who work in low-income schools for five consecutive years.
Borrower Defense to Repayment allows you to seek forgiveness if your school closed while you were enrolled or shortly after you left, or if the school engaged in fraud or misrepresentation. Permanent Disability Discharge forgives loans for borrowers who are totally and permanently disabled.
These programs have specific process processes and documentation requirements. Information about each program and how the process works is available on the Federal Student Aid website. If you think you may be may be able to access for any of these programs, review the requirements carefully before explore.
Frequently Asked Questions
Do I have to pay back the interest that accrued during the pause?
No. Interest that accrued during the pause was not added to your loan balance. When payments resumed, your balance returned to what it was before the pause began. However, interest is accruing again now that payments have resumed, so your balance will grow if you only make minimum payments.
What if I have private student loans?
Private student loans were never paused. If you have private loans, you should have continued making payments throughout the pause period. Contact your private lender directly to confirm your current payment status and amount owed.
Can I get another payment pause if I'm struggling?
The payment pause that lasted from 2020 to 2023 was a temporary measure and is not being repeated. However, forbearance and deferment remain available options if you are experiencing financial hardship. Contact your servicer to discuss what options may be available to you based on your situation.
How do I know if my loans are in default?
You can check your loan status by logging into studentaid.gov with your FSA ID. Your servicer will also contact you if your loan is in default. If you believe your loan may be in default, call your servicer or the Federal Student Aid Information Center at 1-800-433-3243 to confirm.
Will the pause affect my credit score?
The pause itself did not harm your credit. However, if you had missed payments before the pause began and your loan was in default, that default remains on your credit report. Once you resume payments and stay current, your credit will gradually improve over time.